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(generated from captions) income earners. The All

Ordinaries rose 32 points.

Japan's markets were closed for

a public holiday and will

reopen tomorrow at 15,867. In

Hong Kong buying of bank and

property stocks drove the Hang

Seng higher and the Dow opened

shortly at its weekend close of

11,561. Well, London is open

for business and a short time

ago I spoke to Justin Urquhart

Stewart director of Seven

Urquhart Stewart thank you very Investment Management. Justin

much for talking to us. The

market's up this morning ahead

of the Federal Reserve's

meeting in the US? Yep and

generally the view is that

there's a chance they probably

won't move this time. The

thought is really they've taken

it far enough. The market's

not pricing in another rate

rise at the moment. That could

easily change over the next few

months. Look at how US housing

has eased off. Between now and

labour day we may see it

staying flat. At the same time

a different rate picture in the

UK and Europe? In the Eurozone

they're concerned about the

core inflationary issues.

There's a good chance we'll is

see further rises there. As

for the United Kingdom we've

had our Chancellor out in

Singapore making noises about

our inflation. The government

inflation figures are 2.5% but

with all the utility price

rises gas and petrol, probably

essential spending inflation is

about 5 to 7%. Stand by,

probably another interest rate

rise in the United Kingdom as

well. What's driving the FTSE

today? I have to say at the

moment what we've got is a

little bit of movement back

into oils. Interest in oil

companies. Shell for example

are potentially being earmarked

as a possible bidder for BG

group, the old British Gas.

But the Russian gas company is

100% owned by foreigners.

There are problems with Russian

authorities particularly in

regard to environmental controls. Doesn't normally

happen in Russia. As a result

I suspect Shell will probably

be selling 25% to the Russians.

Not that they've got much

choice I suspect. Hearsay and

rumour on the market? Smut

coming out of the market. It

is the possibility the Barclays

Bank might be bidding for ABN

am borrow. Barclays is concerned others have been

looking at it. Before you get

swallowed by somebody else, do

a bigger swallow. No small

fish to eat up. Nonetheless

it's moved the price a little

finally beginning to see bit. European banking is

further merger and acquisition

activity gaining some

momentum. Finally and briefly

Wall Street, what's the

pre-market telling us? We might

see a rise higher there. The

US did well last week where, of

course, the United Kingdom as

ever looking rather miserable.

We haven't got our confidence

back yet. Something to do with

the time of year. Justin

Urquhart Stewart thank you very

much for your time. My

pleasure. Back home and today

was a big day for five listed

Australian companies as they

began life as big boys of the

corporate world. They've been

added to the ASX200, the

sharemarket benchmark for most

investors. Incitec Pivot is

Australia's biggest fertiliser

company created in 2003 by a

spin-off from Orica and then a

merger. Chief executive Julian

Segal says its addition to the

ASX200 is confirmation of the

success of that strategy. Us

being included in the ASX200

means that we're a serious

agribusiness. It means that

our strategy to be a fertiliser

powerhouse is a credible one

and that the investors support

us in our endeavour. Incitec

Pivot is one of five companies

elevated to the ASX200 index

from others. The others being

Beach Petroleum, Babcock and

Brown Capital, Bolnisi Gold. Leaving are McGuigan Simeon

Wines, Novogen, Repco, Vision

Systems and paintmaker Wattyl.

The changes are part of a

regular refreshing of Stock

Exchange indicies conducted by index operator Standard &

Poor's and based on company

size and share turnover. Eric

Smith is head of investments at

Vanguard. If you think about

the market at large it changes

ocontinuously as companies are

listed which we've seen a bit

of lately or new entities are

created like Incitec Pivot by

merger activity and then

spinning off from a bigger

group and so the indexes have

to change at least occasionally

to reflect the structural

change in the broader

market. And with the global

resources boom one of the key

drivers of the Australian

sharemarket, it's no surprise

that two of the new entrants in

the ASX200 are from the

resources sector. High

commodity prices mean more

money is available through the

market for exploration, more exploration means more

discovery and if you have a discovery like we've been

fortunate to have, a very

high-grade well-class

discovery, then you're going to

be valued at a high multiple

than you would be at another

time. It's estimated the

rebalancing of the Stock

Exchange indices will result in

about $450 million in extra

share trading as index fund

managers adjust portfolios to

reflect the changes. Prices

and volumes may move but this

is normally a short-term

impact. Over the long-term,

though, inclusion in an index attracts the attention of

institutional investors. If

it's a stock in the index they

have to be careful about

choosing not to own it. They

need to make a positive decision about that because

their clients the large superannuation funds hold them to account against the

performance of the index. For

the losers such as Smart Card

developer ERG it's a sign

they're out of favour with

investors. ERG traded at

nearly $27 during the heights

of the dotcom bubble. It has

been dropped from the ASX300. That's despite developing a

high-tech ticketing system for

Melbourne's public transport.

For investors it's not just off

the track but off the radar.

Andrew Robertson reporting. To

media now and Channel 7's

attempt to sue rival

broadcasters for the failure of

its pay-TV arm is nearing final

stages. Jonathon Sumption has

delivered the network's final

oral submission alleging

Seven's competitors conspired

to kill C 7. The judges

questioned evidence from

Seven's top executives.

It was day 109 of the case

which has involved all the

major media players in

Australia. Seven is suing

competitors including News

Broadcasting, Telstra and Limited, Publishing and

Optus, accusing them of

conspireing to kill its pay-TV

channel C 7. Top British silk

Jonathon Sumption for Seven

revisited the chief claim from

the network that its

competitors concluded to stop C

7 from gaining rights to the Australian Football League and the National Rugby League in

2000. He told the court:

Mr Sumption said News Limited

through its interests in Foxtel

and Fox Sports breached the

Trade Practices Act but the

Justice called on Seven to

narrow legal arguments. He's

previously said the case was so

complex he would have trouble

making a decision. Justice Sackville said there were

issues relating to evidence

given by Kerry stokes and

director Peter Gammell that

needed to be addressed. They

include a disparity between

their recollection of empts and

documents presented to the

court by seven. Justice

Sackville said that may matter

if he's asked to accept Mr

Stoke's version of events. Mr

Sumption countered by saying

consistencies in evidence

didn't mean that nothing a witness said should be

accepted. The network is

seeking more than $1 billion in

damages in one of the most

costly court cases in

Australia. Seven will complete

its submission either tomorrow

or Wednesday, then News Limited

will take the stand.

Sue Lannin reporting. One

profit result today Australian

Unity which posted a big jump

in earnings in the year its

members voted against

demutualisation. The mid tier

insurer has announced a net

profit of almost $24 million,

up 54%. Australian Unity says

rising premiums and its merger

with grapbd United retirement

villages were keying to profit

growth but warns consumers will

suffer if Medibank Private is

broken up and sold. If all you

do the strengthen the big guys that's not necessarily

strengthening competition.

You've got to look at the total

picture of the health funds and

the role they play in

competition to understand what

will happen. Australian Unity

also says a more important

issue for the industry is

legislative reform to tackle

the rising cost of health care.

Leighton Holdings and joint

venture partner Abigroup have

won the contract to upgrade

Brisbane's Gatway Bridge. Work

worth close to $1.9 billion

will start later this year.

The contract will include

building a second bridge 50

metres east of the existing

Gatway Bridge. In another

major construction project AG L

is to build Australia's largest hydro-electric power plant in

25 years at a cost of $230

million. Construction will

start shortly in the Victorian

alps at Bogong in the Kiewa

Valley at the base of Lake Guy.

The scheme will increase AGL wholesale electricity

generation by 5% and it will

mean half the company's total

output will have zero

emissions. 18 of the world's

agricultural exporting nations

gather in Cairns tomorrow night

for the 20th anniversary

meeting of the so-called Cairns

Group. The meeting is seen by

some as the last chance to

kickstart the Doha round of

global trade talks which were

suspended indefinitely in July

when the key players - the US

and the EU - failed to agree on

cuts to farm subsidies and

tariffs. They got a member of

the Cairns Group the US is

sendeding a trade

representative but the EU's

trade commissioner is not

coming. Still, Australia's

Trade Minister Mark Vaile hopes

the week will provide momentum

for talks to resume. On the

eve of the meeting I spoke to

Mark Vaile from his electorate

office in Taree on the NSW Mid

North Coast. Minister, thanks for talking to Lateline

Business. Pleasure. World trade

talks have collapsed and

there's no date for a

resumption. Against that

backdrop how important is this

meeting of the Cairns Group? It's quite significant

particularly in its timing, in

that we're now at the end of

the Northern Hemisphere holiday

period in August-September and

the focus will come back onto

what can be done to restart the

negotiations. They are only in

a state of suspension so they

can be restarted at any time.

If particularly the major

players recognise there's an

opportunity to bridge some of

the issues that they are still

left dividing them. What's your

benchmark for success then out

of this meeting? Is it setting

a time, a date and a place for

restarting negotiations? Well I

think that it's a bit hard to

forecast whether this meeting

will actually predict a date

for restarting the meeting. I

think it will be an opportunity

for a good discussion between

those key players and our group

about what needs to be in

place, what needs to change

from when we last met in July

until now. That will precipitate forward movement as far as a meeting is

concerned. Given that the EU

trade commissioner is not

there, how much weight will

anything this group decides

have in terms of trying to

restart global talks? It will

have as much weight as it

always has had alley over the

last 20 years, the Cairns Group

has been an integral part of

the architecture if you like of

the world trade system and

before that the GATT and it

will continue to be because at

the end of the day no decisions

can be made no commitments can

be made and no deals can be

done without the commitment of

the Cairns group of countries.

That's why they've always been

an integral part. Do you think

this meeting in Cairns could be

the catalyst for the big players to make sufficient

concession s for talks to

resume? I believe that it will

have a catalytic effect, yes.

Whether it's enough to get it

all the way to conclude, that

remains to be seen. But certainly this meeting will

have a cat liesing effect in

precipitating an outcome

eventually and we have to build

on meetings like this and

meetings like the one that was

held in Rio de Janeiro a few

weeks ago and use those as

stepping stones to move this

process forward. What's the

next stepping stone after this

one? I suppose the APEC leaders

meeting later this year.

There's no doubt in my mind

that the APEC leaders' meeting

which will be held in Vietnam

later on in this year will be a

critical meeting in adding the

momentum or rekindling the

momentum that has been there

over the last couple of years

to try to bridge the last

kilometre if you like in the

differences between the major

players and, of course, the APEC meeting is the leaders

from the Asia-Pacific Asian

economic cooperation area and

that's probably more than 70%

of global trade. There's a

sense of urgency, though, isn't

there? Particularly given the

legislative requirements in the

US? Well there is a sense of

urgency and it's real. The

urgency is real because if we

don't hit particular timelines

now particularly by the end of

this year and then the Trade

Promotion Authority that has

been granted to the Bush

Administration in the US by

Congress expires in the first

half of next year and the United States can't negotiate

without that, and so there is a

critical timeframe that

everybody is working to at the

moment and if we miss that

window of opportunity then it's

possible that these

negotiations may go on for

another three years. Indeed.

What price failure? Should farm

subsidies be put into the

too-hard basket so you can look

at other areas? Absolutely not.

There has been too much work

done by too many countries and

too many people over the last seven, eight, ten years if you

like since the end of the

Uraguay round not to deal with agricultural. Even if it's at

the expense of an early

agreement or any agreement? Absolutely. There

is no stomach across the

majority of the membership of

the WTO for doing what you're

describing, which is basically

a Doha light, which is doing a

half a deal on agriculture.

There is no stomach for that

and thround is likely to go on

for a number of years rather

than do that. As we said the European trade commissioner is

not going to be in Cairns and

this follows allegations by the

EU that Australia has been

Europe bashing, that Australia

is too pro-American. Does

Australia still have a status

as a credible third party, as an independent player or we

have annoyed the Europeans? No,

of course we do. We're a

member of the G 6 which is a

core group of six ministers

that have been guiding this

process within the WTO and

reremain there. Just because

Peter can't make it out to this meeting in Cairns this week

doesn't mean that we are not

actively engaged. In fact only

a week or so ago I had a rather

lengthy phone conversation with

him talking about just the

issues that we're talking about

now - how are we going to move

this forward? What has got to

be done? The European Union is

totally engaged in this process

as is the United States and

engaged in discussions with

Australia and the Cairns Group

on how we find a way forward

for the next step to open the

next door. Minister, thank you

very much for joining

us. Thanks, alley. For a look

now at how local markets

performed today I spoke earlier

to Rob Henderson at the

National Australia Bank.

Thanks for talking to us. A

positive start to the week with

some interest in banks? That's

right. The market ended up

about 0.75% higher today. It

was buoyed by the banking

sector although the energy

stocks also did well. That's

despite some bad news for

metals on Friday night? Well

yes, that's correct. The

metal's markets took a

hammering on Friday night.

Overall metal prices dropped by

3%. There was a 9% drop in

Nickell prices. Copper prices

came off 2%. Over the last day

or so we've actually seen

higher oil prices coming

through. That's been boosting

the energy stocks today in our

stock market. How closely is

our market going to be watching

that Fed meeting on Tuesday

night? Part of the boost to the

banking and financial sector

today came because of strorng

markets in the US on Friday

night. That in turn reflected

some pretty good CPI numbers

out of the US which is saying

that the Federal Reserve will probably leave interest rates

on hold when they meet on

Wednesday night. It has an

effect on our stock market.

Also it's important that if the

US economy is slowing down that

ought to mean that there's

greater scope for the Reserve

Bank to leave interest rates on

hold here. A slightly different

issue, but skilled vacancies. The Prime Minister's been

talking a lot about that today.

We'll get an update on skilled

vacancy numbers on

Wednesday? That's right alley.

We get the skilled vacancy

numbers on Wednesday which are

likely to show us that skill

vacancies are actually on a

slight down trend. That's been

the case in the last few

months. In August a fall of

3%. They're about 7% down year

on year. As you'd imagine the resource-rich States

particularly Western Australia

and Queensland, have been

generating more skilled

vacancies than other States.

Although NSW and Victoria are

still producing quite a lot of skill vacancies. Obviously,

though, still in line with the

different economic conditions

in each State. Rob, thank you

very much for your time. My

pleasure, alley. More detail on

the markets. Top stock was

Mayne Pharma which gained 6%

after the company got the

go-ahead from America's FDA to

market its anti-cancer drug.

Shares in gain corp rose 6.5%

after announcing higher than

expected profits. Kingsgate Consolidated the

Australian-listed company that

owns Thailand's only goldmine

also came back into favour with

the rising gold price. And

Santos rose by over 3% after a

modest weekend rebound in oil

prices that followed a week of

heavy losses.

Falling 12% today was

instrumentmaker Vision Systems

after hopes of a bidding war

evaporated when one of the

bidders pulled out and Rio

Tinto shed 1.5%. Now for our

regular feature where we

profile successful business

people. The glass industry has

proven to be as fragile as the

product it creates. Most companies in the industry have

a shelf life of just six years

before being bought out by a bigger competitor. There's one

exception to the rule, Express

Glass started 20 years ago and

it's now the largest privately-owned glass company

in Australia. Keith Grocott is

the founder and managing

director. This profile is by

Brigid Glanville.

These days Keith Grocott is

more concerned about his next

overseas trip than the

day-to-day running of his

business. But it's taken more

than 20 years of hard work and

sleepless nights to get there.

It all began in 1984. Keith

was working as an accountant

for another glass installation

company and began building

Express Glass on the side. Well, I would be

surviving on one or two hours

sleep a day because I do my

day's work and go home to do my

paperwork and then my pager

would go off at 10 o'clock for

a job somewhere the other side

of Sydney. Keith now regularly

gets eight hours sleep and has

around 60 employees. Over 30

trucks and delivers and

installs glass around

Australia. But the success

hasn't come easily. At times

it's been stressful and at

other times it's stretched our

financial capacity. Express

Glass doesn't manufacture, its

glaziers cut and install glass

around the clock. In homes,

offices and shopping centres. In numbers of

employees we've gone from one

to counting Melbourne, about

60-odd employees now. I don't

remember what my first year's

turnover was. A lot? That was

probably the first year would

have been maybe $100,000 for

the year, maybe 150. Now we're

up into the, close to $10

million per annum. While Keith

Grocott has put the hours in at

the office he's slowly handing

control to his family. His

oldest son Adrian runs the

day-to-day operations. I've

finished all the key

performance indicators this

morning. Does he cop the rants

and raves? We have a few disagreements but generally

resolve them. They're mostly

to do with the direction the

business is going and whether

I'm a bit of a dinosaur in

certain ways about what sort of

business we want and what's

good and bad business . Are you

a dinosaur? I think with -

yeah, I think in certain ways I

am. I've worked out to do text

mentals on my mobile phone. While Keith Grocott's

fashion and focus over the past

20 years has been on expanding

this business, he started and

company himself and now has

over 60 employees, his other

great passion is race horses.

Breeding up to eight at a time

Keith can often be found at the

track. It's a hobby he now

also runs as a business, a more

risky business, but it's also

making a profit. Like all good

racing types Keith keeps his

tips to himself. Only

confiding with his trainer John

O 'Che and daughter Liz. It

was Liz who introduced her

father to the racing world. For

the amount of money that I

would have invested in horses

some people invest that in a

boat. But I get sea sick so

that's no good. I think it's

important that you have outside

interests. While Liz has

provided a few winners Keith

admits she's helped him out in

many more ways. Hearing

impaired since Perth, Liz has

been known to translate

conversations across the

stables from lip reading. For

now Keith Grocott's main focus

is still Express Glass and he

lets the experts at the track

train the horses. What's been

the key to Keith Grocott's

success? Apart from hard work,

the staff that we've built

around Australia over all these

years is - we would not be

where we are today if it wasn't

for the quality of people we have working in this

organisation. Brigid Glanville

reporting there. To the

currency markets and the

Australian dollar is unchanged:

Brief look at tomorrow's

business diary.

Shareholders will discuss a

proposed pay rise for the

company's directors.

Before we go, a look at

what's making news in the

business sections of tomorrow's

papers. The 'Age' looks at

Coles Myer. Taup also looks at

Coles Myer and reports on the

slashing of senior staff in the

marketing and finance divisions

as part of a restructure aimed

at cutting $100 million in

costs. The 'Australian

Financial Review''s front page

focuses on the Cole inquiry and

the behaviour of the Australian

Wheat Board. And the 'Sydney

Morning Herald' says the chief

executive of Babcock and Brown

Wind has pledged to buy back

shares in the company he sold

two months ago. That's all for

tonight. As I leave you the

FTSE is up 11 and the Dow is

down just 7 points in the first

few seconds of trade. If you

want to review any part of

tonight's program you can visit

our website. We'd also love to

get your feedback.I'm alley

Moore. Goodnight. Captions by Captioning and

Subtitling International.

Ali Moore. Goodnight. Captions by Captioning and Subtitling International.